Florida Citizens Clarifies What is ‘Comparable Coverage’ in HO, DP Policies

Carriers making takeout offers for Florida Citizens Property Insurance policies have often run into a question: What exactly constitutes “comparable coverage?”

That has posed some issues in Citizens’ personal lines clearinghouse platform, the Florida Association of Insurance Agents’ Dave Newell said in blog post. (And new issues about comparable policies may arise in the commercial-lines clearinghouse that is set to be created later this year.)

Citizens this month offered a bulletin that may help. The bulletin notes that effective today, June 26, policies placed through Citizens’ EXLynx clearinghouse will not be considered comparable unless the policies offer replacement value for roof damage, and provide at least $10,000 in non-weather water damage coverage.

“These offers will still be presented but will not render the risk ineligible for coverage with Citizens,” the bulletin explains.

The clarification applies to Citizens’ HO-3 and DP-3/dwelling policies.